Medi-Cal Recovery State Plan Amendment Approved – Regulations Coming
CMS issued its approval of the DHCS State Plan Amendment (SPA) that makes various changes to the Medi-Cal program's estate recovery program, including limiting estate recovery to probated estates for only federally-mandated services; adding a hardship waiver criterion for a "homestead of modest value;" eliminating recovery from surviving spouses and registered domestic partners; and updating the interest rates for voluntary liens.
The effective date of the SPA is January 1, 2017, and the Department is in the process of drafting the appropriate regulations. Because of the economic impact, the process will take longer than usual, but the Department estimates that a draft will be available to stakeholders by the first week of June 2017 and formal notice of the draft regulations will be published by October 1, 2017.
It should be noted that, regardless of when the regulations are finalized, the new recovery rules apply to the estates of those individuals who died on or after January 1, 2017. Meanwhile, we will keep you posted as to any changes.